Petrobras (NYSE:PBR) stock is getting a boost on Monday thanks to a couple of positive bits of news for the Brazilian oil company.
First up is talk that OPEC Plus will likely cut oil production. The group is meeting on Wednesday to discuss the matter as it looks at how to handle falling prices amidst weakening demand for oil products.
It looks like Saudi Arabia might be behind this, as it wants to increase the price of oil per barrel. Currently, that price is hanging around the $85 mark. However, analysts predict Saudi Arabia wants to increase the price to at least $90 per barrel with lower production.
Seeing as Petrobras is also in the oil industry, it would benefit from an increase in prices. Also, lower production from OPEC Plus, which Brazil isn’t a member of, could mean more market for its oil.
Brazil Elections Are Also Helping PBR Stock
The presidential elections are underway in Brazil, and sitting President Jair Bolsonaro is doing better than expected. He managed to secure a runoff vote by keeping challenger Luiz Inacio Lula da Silva from claiming a majority victory.
That means there will be another round of votes that could see Bolsonaro continue to lead the country. This is causing markets in Brazil to surge today, with Petrobras seeing those benefits as well.
Today’s news also brings heavy trading to PBR stock with some 31 million shares on the move. That’s already above its daily average trading volume of 29 million shares.
PBR stock is up 12% as of Monday morning.
Investors looking for more recent stock market news will want to stick around!
InvestorPlace is home to all of the latest stock market news for Monday! That includes why shares of Clovis Oncology (NASDAQ:CLVS) and Norwegian Cruise Line (NYSE:NCLH) are moving, as well as short squeeze stocks to watch. You can find all of that at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.